Every year sub-Saharan Africa receives around $134bn in loans, foreign investment and development aid, according to the UN. Nonetheless, sub-Saharan Africa is still the poorest region in the world. For many years the international community has debated over the reasons why every year billion and billions of dollars are not taking sub-Saharan Africans out of poverty. Three major groups have prevailed in the discussion. First, the people who totally blame Africa for not doing its job right, completely forgetting that most of the funds are not administrated by Africans. Second, the people who believe that even though aids are not working, the international community should keep investing funds in Africa even if is failing; one day they will work.
And as peoples trust in the State to fulfil its tasks dwindles, so does the States power to provide those services (ibid.). But from a development perspective things are a bit different. Most problems in delivering services to citizens are financial in nature (Greve, 2012), but where a lack of funds might stop State-led development, it is not detrimental to the State as an agent of it. For what is perceived ‘’good development practice’’ there is always international funding (for example McGrath, 2015, Worldbank.org, 2015, Undp.org, 2015). This paper does not go into the debate of is ‘’good development practice ‘’ good or not- it takes internationally sponsored and promoted development practice as implicitly good. And for the sake of argumentation on- is the State a good or bad agent of development- it does not matter what kind of development it promotes. So this good development is taken as the one we want our states to be agents to. And the State relying on foreign sources of funding development practice when it lacks state funds for development might be positive. To clarify, a state that runs a budget deficit does not have the monetary power to start development policy. This allows for the internationally funded and tried-out development practice to become the only development practice a state can enforce (finance), because it can fund it from external sources such as donations,
Although a lot of hopes and expectations are provided in the current process of democratic modification and its capacity to engineer good governance, the possible outcome of the process remains uncertain and open to speculation. In Africa, just like any other region of the world, the indicators and cost of bad governance are corruption, injustices, inequity, integration crisis, ethno-religious feuds and a host of others. Corruption has generated an unthinkable level
Global funding institutions such the World Bank and the IMF play a significant role in the economic and business enhancement of developing countries. These organizations provide funds to assist developmental programs and projects in developing and already developed countries. The World Bank, along with IMF funds vital and fundamental projects in crucial areas. They funds things like free education, subsidized health care through insurance covers and provide relief for these nations in times of great economic crisis (Tulchinsky & Varavikova, 2009). However, researchers have listed a lot of disadvantages associated with these two international funding institutions.
The purpose of this paper is to demonstrate how challenging the environment where public administration is being implemented can be in countries that are just developing. The importance of governments and public administrators in these countries is high. They play a very important role when it comes to sustaining new development and maintain economic growth. The main roles of a government are to protect the environment, reduce socio-economic inequality, combat poverty, and support both social and private sector development, among others. The only way governments can accomplish this is to strengthen the public administrators in order to fulfill these need and ensure that expectations are met. An example of an environment this essay will delve into will be the sub-Saharan African environment. This environment in particular is affected by massive amounts of debt, poverty, HIV/AIDS, other diseases, famine, corruption throughout the government and violations of human rights.
The International Monetary Fund and World Bank Group The International Monetary Fund (IMF) and the World Bank have had enormous impact upon the world’s economies since their inception, after World War II. Although each of these organizations has a similar history, their role, objectives and funding are unique. These Washington DC-based organizations have drawn more than their share fair share of criticism as well as praise. Modern nations require thoroughly understand of these organizations. The IMF’s beginnings derived from two tragedies.
We addressed our concerns towards the efficiency of this resolution as we proposed a motion that is ensuring the efficiency of the financial aid use in improving health service and infrastructure in vulnerable nations. As the delegate of Congo started as the first speaker, she stated in her speech that cooperation with Anti-Corruption agencies should be enforced in order to monitor the expenditure of financial aid as well as enforcement of laws from those agencies. The delegate of Venezuela took consideration of the correlation of this topic that can be elaborated on QARMA number 3 regarding governmental responsibility on this issue. Some delegates also added that those financial aids should be more transparent by making financial reports that will later on be published by the WHO for reliability that could be viewed publicly. While the delegate of United Kingdom proposes a solution to hold a minimum development requirement for countries granted financial aid, by doing so it could ensure that the use of financial aids are efficiently used. While the others have the same opinions, as they are convinced that there needs to be cooperation with other UN bodies such as the Economic and Financial Affairs Council (EcoFin) having a role to do the
The large cash injection would then create a “greasing the gears effect” and allow for the jumpstart of economic development. Between the years of 1948 and 1952 the U.S. granted $13 billion to revamp the European economy (Dambisa, 2009: 35). This particular method achieved great success in post-World War II Europe and was known as the Marshall Plan. Due to its effective and unquestionable success in this era, the model was applied to economic development in Africa with the confidence that the same outstanding results would ensue. However, the application of the Marshall Plan to Africa is problematic for three reasons. One, the Marshall Plan had a rigid duration period of five years while, the concessional loans and grants to Africa over the last 50 years have been unending (Dambisa, 2009: 36). Two, European institutions were already in place to receive the aid efficiently and effectively. In Africa, however, these same institutions are either non-existent or grossly ineffective due to corruption (Dambisa, 2009: 37). The vast amounts of corruption have been heavily documented. Mobutu Sese Seko, President of the Democratic Republic of the Congo from 1965 to 1997, for example, stole an equivalent of U.S. 5 billion dollars from his people (Dambisa, 2009: 48). However, even the less corrupt rulers of many African countries had few options as to what to invest the aid money on. Consequently, the bulk concessional aid goes directly into consumption without a variety of investment outlets. This process does not solve the problem but instead, allows for the cycle to continue. Lastly, three, the money from the Marshal had specific targets to repair physical infrastructure such as, roads, communications, sewage, factories, and electric systems (Dambisa, 2009: 37) In Africa today, the scope of the
The trouble with aid reveals, over time government in start to lose their sovereignty as they keep receiving aid. The aid created restrictions by the government because of the regulations of placed by those giving the donations. For they have a certain idea of how and where the money should be spent. This reduces the accountability of the government to its people and gives more agency in countries to while reducing the agency of the local government to intervene their rule of a state.
The Effect of Civil War on the economic developmental of Sierra Leone Sierra Leone, a country that lies on the west coast of Africa, faced a gruesome war that occurred from 1991 to 2002. The civil war generated consequences that the people of Sierra Leone and its economy are paying for.
Whereas the United States? budget deficit forces many government agencies, including the Agency for International Development(AID), to lose funding. Furthermore there is no reason to send billions of dollars over seas when northern countries like the United States and Great Britain currently face the highest levels of child poverty that either country has seen in over 25 years. In addition to poverty, other domestic problems such as rape, robberies, and murders in this country still exist. Until domestic issues are solved, any future increase in foreign aid should also be kept to a minimum.
Aid is defined as a voluntary transfer of resources from one government to another independent government, but to what extent should a country help. It is known that aid can be in the form of debt, food, or cash. Often in today’s world population many people agree or disagree with
Several developing countries are sunk in debt and poverty because of the arrangements of global establishments, for example, the International Monetary Fund (IMF) and the World Bank. Their projects have been vigorously reprimanded for a long time and have been constantly blamed for poverty. Moreover, developing countries have been in constant expanded reliance on the wealthier countries, despite the IMF and World Bank's claim that their main goal is to fight poverty (Shah, 2013). During recent decades, the poorest nations on the planet have needed to swing progressively to the World Bank and IMF for money related help, because their impoverishment has made it unthinkable for them to acquire somewhere else. The World Bank and IMF connect strict
In an article published by The Spectator entitled “Why foreign aid fails – and how to really help Africa,” Daron Acemoglu and James A. Robinson condemn the current system of foreign aid granting and suggest an alternate, more efficient solution. They support their points by deducing that “extractive institutions,” in which incentives for economic prosperity are few, are the culprit of enduring poverty; by providing examples where foreign aid failed to reduce poverty (Congo, Angola, Syria, and South Africa); by giving testimonies from former British Prime Minister David Cameron and multilateral institutions concerning the effectiveness of foreign aid; and by advising an alternative solution to combating poverty, involving diplomatic relations
Over the last 50 years, the world has struggled to maintain an economic balance and stability, while flourishing countries try to maintain a steady income to support its people and relations with other countries. Therefore, when a continent like Africa fails to maintain a stable government and economy, super powers such as America decide to intervene with its relations. Africa has great potential to become another pillar of the world’s economic structure with its mass amounts of uncultivated land. Unfortunately, corruption and irresponsible governments hinder that progress. Foreign aid while helpful should be limited to a yearly amount because it allows the government to repudiate responsibility and gives room for corruption; it creates a